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need help please Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, Industrial gas turbines, and diesel- electric locomotives worldwide.
need help please
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, Industrial gas turbines, and diesel- electric locomotives worldwide. Caterpillar expects to pay a year-end dividend of $1,80. Investors expect the growth rate in dividends to increase at a constant rate of 8 percent a year. Assume that investors require a rate of return of 15 percent for Caterpillar stock. Assume that Caterpillar's stock is currently trading at $36, Required: Calculate the price intrinsic value) of Caterpillar stock and discuss whether this stock is over or undervalued Step by Step Solution
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